Coal export regulation Indonesia 2026 is now one of the most important legal issues for mining companies. Indonesia remains a major global coal exporter. However, the regulatory landscape is becoming more controlled, more technical, and more enforcement-driven. For mining companies, this creates real business pressure. A contract that looked safe last year may now need […]
Unlawful act in Indonesia is a powerful legal basis in commercial disputes. It allows an injured party to claim compensation when another party causes loss through unlawful conduct. In Indonesian law, this concept is known as Perbuatan Melawan Hukum or PMH. For businesses, this issue is not merely academic. It often appears in shareholder disputes, […]
Unpaid Invoice Indonesia is a serious business issue. It affects cash flow, trust, operations, and commercial stability. Many companies deliver goods or services on time. However, the buyer delays payment, disputes the invoice, or disappears. This situation can create pressure for business owners. It also creates legal uncertainty. In Indonesia, unpaid invoices are not only […]
Failure to register a foreign marriage in Indonesia may lead to not having a legal standing and complications in legal matters such as property ownership and inheritance matters. It is important to ensure proper registration to secure legal recognition and rights in Indonesia.
The Indonesian Ministry of Law and Human Rights Regulation Number 22 of 2023 outlines the legal framework for all visas and stay permits.
The standard working hours in Indonesia are 40 hours per week, with either 7 hours per day for 6 days a week or 8 hours per day for 5 days a week. Overtime is allowed, but it should not exceed 4 hours per day or 18 hours per week, and overtime pay must be provided as per Government Regulation No. 35 of 2021.
Yes, you can bring immediate family members (spouse and children) under a Dependent KITAS. Your dependents will be issued a KITAS based on your work permit, allowing them to stay in Indonesia legally, though they cannot work.
What is a PT PMA?
A PT PMA is a foreign-owned company in Indonesia, allowing international investors to own shares and operate within Indonesia under specific regulations.
What is a PT PMDN?
PT PMDN is a company fully owned by Indonesian nationals or entities and operates under local investment laws with fewer restrictions than PT PMA.
What is a Representative Office (RO)?
RO is a non-revenue-generating office set up by foreign companies for liaison, market research, or promotional activities in Indonesia.
What is a Permanent Establishment (PE)?
A PE is a foreign company’s local business presence in Indonesia, taxed similarly to local companies and used for operational activities.
What is the minimum number of shareholders required for PT PMA and PT PMDN?
Both PT PMA and PT PMDN require at least two shareholders.
What are the capital requirements for PT PMA and PT PMDN?
PT PMA requires a minimum of IDR 10 billion in capital, while PT PMDN has no specific minimum but must follow general corporate laws.
Can foreigners be involved in PT PMA?
Yes, foreigners can be shareholders and directors in PT PMA, though restrictions apply in certain sectors.
What taxes apply to PT PMA, PT PMDN, RO, and PE?
PT PMA and PT PMDN are subject to corporate taxes and VAT; PEs are taxed on local income, while ROs are not taxed as they don’t generate revenue.
Can a PT PMA operate in all business sectors in Indonesia?
No, certain sectors are restricted or closed to foreign investment under the Negative Investment List. It’s essential to verify sector-specific regulations.
Is local partnership mandatory for a PT PMA?
Not necessarily, but in some sectors, foreign investors must partner with a local entity or individual, depending on the industry’s regulations.
What documents are required to establish a PT PMA?
Key documents include Articles of Association, shareholder and director IDs, a registered office address, and compliance with sectoral licenses.
Can an RO transition into a PT PMA?
Yes, but the process requires establishing a new legal entity (PT PMA) and cannot simply be converted; it involves fulfilling investment requirements.
Can an RO hire employee?
Yes, an RO can hire local staff but is limited in terms of its operational scope since it cannot conduct direct business activities.
Are there industry-specific licenses required for PT PMA or PT PMDN?
Yes, many industries require specific permits or licenses in addition to general company registration, such as those for finance, construction, or mining.
What are the reporting obligations for PT PMA and PT PMDN?
Both must submit annual financial reports, tax filings, and comply with local labor and employment reporting to relevant authorities.
What is the difference between a PE and a branch office?
PE is a local taxable entity for foreign companies engaged in certain business activities, while a branch office is not common in Indonesia except for specific industries like banking.
